During the group’s NADA Show event in Las Vegas, North Carolina dealer Mike Alford will become the 2022 chairman of the National Automobile Dealers Association. 

Alford, who is the dealer principal at Marine Chevrolet in Jacksonville as well as Trent Buick Trent Buick GMC and Trent Cadillac in New Bern, will be the second NADA chairman in the past nine years from the Tar Heel State, which is home to Sonic Automotive and Hendrick Automotive Group.

David Westcott of Burlington, N.C., was the 2013 chairman. That same year, Alford was named the TIME Dealer of the Year. 

Below is an emailed Q&A with Alford. 

Auto Remarketing: What are your top priorities as NADA chairman in 2022?

Alford: We need to continue on this path to electrification. Dealers are “all-in” on EVs; we really need to solidify our role, as franchised dealers, as a tremendous asset and essential to the move towards more electric vehicles. As you know, there are a lot of questions in terms of the franchise system business model over the next three to five years.

And it is one we’ll have to answer with mutual conversations and discovery with our legacy OEMs. Hopefully a year from now, a lot of those questions will have been answered and we’ll be on a faster path towards electrification of the fleet. I think it’s an exciting journey. 

We must also continue to recruit great people into our industry. Franchised dealers must recruit viable and dynamic candidates. 

There are other issues as well, including in the regulatory space. In Washington, there are regulatory initiatives that dealers need to be involved with and play a big role. As chair of the Regulatory Affairs committee, I saw how very many of the issues that bubble up could impact us as dealers. On the legislative front, it is much the same — there is lot of movement that could impact dealers and we need to stay focused on items that we’ve been involved with over the past two years. Luckily NADA has a great team that advocates on our behalf every day.

I also think we, as NADA and as dealers, need to continue focusing on diversity, equity and inclusion. Belonging is central to our industry and we need to reflect our customer base. Indeed, embracing DEI is a business imperative.

And then I would say my final priority is that we all need to come together and participate, whether you’re a dealership manager, general manager, dealer operator, or head of a large, publicly traded entity, we all need to engage and we need to participate. That’s really important, especially during this historic time, when our industry is going to evolve and change rapidly.

AR: What is on NADA’s radar in terms of legislative/political issues? What steps is NADA taking in that regard? 

Alford: There are a lot of legacy issues that will be front and center during my time as NADA chairman. On the regulatory front, VPPs, dealer participation and the FTC’s amended Safeguards Rule are just a few. We need to make sure that dealers are aware of regulatory pressures and understand how to make the necessary changes at their dealerships to comply.

Legislatively, there are a number of tax policy issues that could really have a big impact on dealers across the country. Additionally, we’re closely monitoring the development of any consumer incentives for EV purchases to make sure they work for consumers in the showroom in order to speed up the adoption of electric vehicles and help with affordability concerns.

AR: To what degree have used-car operations become more important to franchised dealers, and what is driving that growth?

Alford: It’s funny, because a year ago, disruptors in the used vehicle space ran Super Bowl commercials attacking dealers. This year their ads are begging for consumers to sell them their vehicles. There is a shortage of product right now because folks that were leasing vehicles were able to extend their leases. 

Dealers weren’t able to purchase those vehicles coming off lease and coming through auctions from rental companies, so the supply channels for dealer operators to purchase used inventory, over and above trade in vehicles, was disrupted. As retailers, all of us sourced vehicles directly from consumers, but there has been inflation in the used car space where valuations have gone up. 

At the same time, it can go the other way and we need to be ready to make quick turns, manage our inventory effectively, and keep pulse of the market. This has been a large part of our success during this time of new product shortages.

AR: What do you make of automakers launching national, online used-car platforms, like GM, Ford, Honda have done recently?  What has to happen for these to be a “win” for dealers?

Alford: First and foremost, any program where an OEM is trying to “disrupt the disruptors” should allow dealers the option to participate or not, and every vehicle should go through a dealer. Any program should show the importance of the brick-and-mortar footprint of franchised dealers who back these vehicles and offer service assurance. 

Programs should also highlight the contrast between franchised retailers and the disruptors, and, finally, should enhance the customer experience, including the digital experience while offering the same opportunity for customers who want to transact at the dealership.

We think these new tools and platforms are going to be great for consumers and for retailers, but that said, the impact and involvement of dealers should be considered.

AR: What are some measures NADA is taking to combat labor shortage, especially around technicians? 

Alford: NADA, our OEM partners and franchised new-car dealer operators are all witnessing an aging of our skilled technician workforce and a shortage of recruiting the next generation to take their place. OEMs are working with their dealers to get new folks to join the industry and show the upsides of a career as a technician. It’s a collective effort and NADA is very involved, including an effort to share these training opportunities with community colleges and technical schools. 

The other thing that I think is going to be really important for us is adjusting the skill set necessary to service and repair EVs. There are a lot of opportunities there.

AR: What must dealers must do to prepare for an increased EV population — especially more used EVs entering the market? 

Alford: There’s a lot going on right now in the EV space, and dealers are preparing with charging infrastructure and the other special tools needed to sell and service these vehicles. There is a substantial amount of capital investment that dealers are making right now to prepare themselves for the electrification of the fleet and for the EV vehicles that we are currently servicing and the ones we will be servicing going forward. 

On top of that, there’s an incredible need for EV education, both of our customers, as well as our own sales and service staff. The sooner that we immerse ourselves with knowledge and with the equipment, the better off dealers will be.